IIC Approves A Transaction For Up To US$5 Million In Nicaragua'S Financial Sector
11/28/2005Washington, D.C.- On November 29, 2005, the Inter-American Investment Corporation (IIC) approved a loan of up to US$5 million to Nicaragua’s Banco de Finanzas S.A. The funds will be used to finance medium-term and/or long-term operations carried out by small and medium-size companies in the agricultural, manufacturing, trade, and service sectors. The transaction is expected to benefit over 200 Nicaraguan SMEs.
Banco de Finanzas S.A. has a broad network with points of sale and smaller branch offices that enable it to operate with lower fixed costs. In February 2005 a specialized SME service center was established in the Rubenia district, where there is a high concentration of such companies. This operation will provide Banco de Finanzas with long-term funding for onlending to SMEs in Nicaragua on terms that are not usually available on the market. Availability of medium- and long-term financing is limited in Nicaragua. The transaction approved today will provide such funding, to the benefit of small and medium-size companies in Nicaragua.
The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC's activities, visit its Web site at www.iic.int.
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